EconoMetric: Financial Econometrics Workbench
Interactive workbench where students apply time series econometric models (ADF, ARMA, GARCH, Cointegration) to financial data across 5 asset…
About this simulation
A mid-size Peruvian life insurer launches a microinsurance unit for families who have never had a policy, with a fixed cost of S/ 600,000 a year and a launch budget that tolerates up to S/ 2,000,000 of cumulative losses.
Over four underwriting years - a pilot, the move to scale, a coastal El Nino with a dengue outbreak, and the year the board decides whether microinsurance becomes a business line - the participant, as head of microinsurance, chooses the product (credit life, funeral, a funeral and hospital-cash combo, or a full plan), the monthly premium, the distribution partner (an appliance retailer, a mobile wallet, a savings and loan bank or the company agents), enrolment, the partner commission, the claims process, reinsurance, how to pay claims in the surge, the answer to a partner demanding 35% and exclusivity, operations, renewal terms and growth.
The model is deterministic: sales, renewal, exposure, claims, commissions, administration and reinsurance follow disclosed rules. The score combines the quality of each decision with the result for the year and the reach of policies that give clients real value, and is capped for enrolling clients without their express consent or for losing more than the launch budget. Spanish (primary) and English.
Who it is for
An intermediate simulation for participants who already know the core concepts of the subject, designed for master's and MBA programmes.
How a session runs
- The instructor creates a session from the Eureka dashboard and invites the participants.
- Participants play 4 rounds. In each one they submit their decisions and the simulation calculates the results. The first round opens with: El diseño.
- The simulation can be run in English, Español.
- The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.